Delayed IT projects to lead to flat IT services market, says IDC

Delayed and reduced enterprise IT projects means there will be almost flat growth in the IT services market this year, said analyst IDC.

IDC has lowered its European IT services forecast for 2009 by 2%, from 2.6% to 0.6%, as a result of the continued erosion of the economy.

According to IDC research, the Western European IT services market will grow at a Compound Annual Growth Rate (CAGR) of 3.7% between 2009 and 2013. Looking beyond 2009, IDC anticipates a slow recovery to start only in the second half of 2010, with sluggish 2.2% growth.

"With business sentiment at a record low in Europe, organisations' non-discretionary spending will freeze, and this will impact approval of new IT projects," said IDC.

IDC analyst Laura Converso said, "Many projects will be delayed, reduced in scope, or chopped into smaller pieces, but so far we do not expect many projects to be cancelled."

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